Barrick Gold, a Canadian mining company, has plans to invest $7 billion inthe Reko Diq mine over the next ten years.
This was revealed during a recent meeting between the Federal Minister ofFinance, Miftah Ismail, and Barrick President and Chief Executive, MarkBristow.
The company will invest $4 billion in the first four years and $3 billionin the next 6 years, according to the CEO of the company.
During the meeting, both parties shared a clear vision of the nationalstrategic importance of the Reko Diq copper-gold project and were committedto developing it as a world-class mine that would create value for thecountry and its people through multiple generations.
Reko Diq is one of the world’s largest undeveloped copper-gold deposits. Anagreement in principle reached between the government of Pakistan, theprovincial government of Balochistan, and Barrick Gold earlier this yearprovides for the reconstitution and restart of the project, which has beenon hold since 2011. It will be operated by Barrick and owned 50 percent byBarrick, 25 percent by the Balochistan Government, and 25 percent byPakistani state-owned enterprises.
The definitive agreements underlying the framework agreement are currentlybeing finalized by teams from Barrick and Pakistan. Once this has beencompleted and the necessary legalization steps have been taken, Barrickwill update the original feasibility study, a process expected to take twoyears. Construction of the first phase will follow that, with the firstproduction of copper and gold expected in 2027/2028.
“During the negotiations the federal government and Barrick confirmed thatBalochistan and its people should receive their fair share of the benefitsas part of the Pakistan ownership group,” Bristow said.
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“At Barrick we know that our long-term success depends on sharing thebenefits we create equitably with our host governments and communities. AtReko Diq, Balochistan’s shareholding will be fully funded by the projectand the Federal Government, allowing the province to reap the dividends,royalties and other benefits of its 25 percent ownership without having tocontribute financially to the project’s construction or operation. It’sequally important that Balochistan and its people should see these benefitsfrom day one. Even before construction starts, when the legalizationprocess has been completed we will implement a range of social developmentprograms, supported by an upfront commitment to the improvement ofhealthcare, education, food security and the provision of potable water ina region where the groundwater has a high saline content,” he added.
Miftah Ismail said the development of Reko Diq represented the largestdirect foreign investment in Balochistan and one of the largest in Pakistan.
“Like Barrick, we believe that the future of mining lies in mutuallybeneficial partnerships between host countries and world-class miningcompanies. The Reko Diq agreement exemplifies this philosophy, and alsosignals to the international community that Pakistan is open for business,”he said.
Subject to the updated feasibility study, Reko Diq is envisaged as aconventional open pit and milling operation, producing a high-qualitycopper-gold concentrate. It will be constructed in two phases, startingwith a plant that will be able to process approximately 40 million tonnesof ore per annum which could be doubled in five years. With its uniquecombination of large scale, low strip, and a good grade, Reko Diq will be amulti-generational mine with a life of at least 40 years. During peakconstruction, the project is expected to employ 7,500 people, and once inproduction, it will also create 4,000 long-term jobs.
Barrick’s policy of prioritizing local employment and suppliers will have apositive impact on the downstream economy.
